Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q4 2024 Earnings Presentation
28 slides from Ryerson's earnings presentation, Feb 21, 2025
Slide 1: Ryerson Quarterly Release Presentation Q4 2024
Ryerson Quarterly Release Presentation Q4 2024 1
Slide 2: Important Information About Ryerson Holding Corporation
Important Information About Ryerson Holding Corporation These materials do not constitute an offer or solicitation to purchase or sell securities of Ryerson Holding Corporation (“Ryerson” or “the Company”) or its subsidiaries and no investment decision should be made based upon the information provi
Slide 3: Q4 2024 Highlights
Q4 2024 HIGHLIGHTS • Generated fourth quarter revenue of $1.01 billion on 447,000 tons shipped at an average selling price of $2,254 per ton • Incurred Net Loss attributable to Ryerson Holding Corporation of $4.3 million, or Diluted Loss Per Share of $0.13 and Adjusted EBITDA1, excluding LIFO of $10
Slide 4: Reversing an Investment Deficit
REVERSING AN INVESTMENT DEFICIT Acquisitions Adj. Net Capex1 Depreciation $121 $97 $98 $68 $51 $56 $52 $54 $46 $47 $40 $38 $37 $41 $37 $26 $49 $20 $21 $14 $12 $33 $20 $9 $1 $49 $170 $- $- $15 $57 $138 $44 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Adj. Net Capex1 vs Depreciation ($136M)
Slide 5: Investing in the Business
INVESTING IN THE BUSINESS University Park – New CS&W HQ Shelbyville expansion Centralia Pacific NW • 900,000 sq ft facility • State-of-the-art cut-to-length line • 214,000 sq ft facility • Significant automation and (CTL) and automated storage and • Advanced processing capabilities technologic
Slide 6: Next Phase Target Sequence
NEXT PHASE TARGET SEQUENCE PHASE 1 PHASE 2 PHASE 3 De-lever Invest in modernization and Market share high-yield debt automation. Cure legacy investment deficit Gains vs MSCI Margin accretion Monetize Integrate North American led by value-added legacy assets and transactional sales growth, service
Slide 7: University Park Productivity
UNIVERSITY PARK PRODUCTIVITY Productivity CS&W Kedzie CS&W University Park (Legacy location) (New Location) 1.4x Investment Thesis 1.2x 1.0x Ryerson Average 0.8x 0.6x 0.4x 0.2x 0.0x 2021 2022 2023 2024 2025E Productivity is measured in lines per hour 7
Slide 8: Bright Metals Constellation Strategy Piece
BRIGHT METALS CONSTELLATION STRATEGY PIECE 2017 2021 2023 Q4 2024 Shelbyville, KY expansion Guy Metals Specialty Metals TSA Shelbyville, KY Processing Service Center Target IRR = ~35% Processing NAS Ghent 1 – 4 hours away from 4 Arconic IN major Aluminum and Stainless producers Commonwealth 7 - 9 ho
Slide 9: Macro & Commodities
MACRO & COMMODITIES Commodity prices since Dec. 2017 U.S. Industrial Production 3.5 CRU HRC 0.9 0.8 LME Aluminum 0.5 3.0 LME Nickel 0.0 (0.1) (0.1) (0.3) (0.5) (0.5) (0.6) (0.8) (0.7) 2.5 (1.2) Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 2.0 U.S. ISM Purchasing Managers Index 49.8 49.1 49.2 48.7 49.2 1.5 48.
Slide 10: Sequential End-Market Trends
SEQUENTIAL END-MARKET TRENDS 2024 FY volume change Sales Mix1 Commentary Metal Fab and Machine Shop 23% Ryerson’s fourth quarter Industrial Equipment 16% shipments reflected a seasonal slowdown in customer buying Commercial Ground Transportation 18% patterns as well as a slowdown in demand from tran
Slide 11: Q1 2025 Guidance
Q1 2025 GUIDANCE Diluted Earnings (loss) per Share Net Income Adj. EBITDA, Net sales (Loss)1 excl. LIFO $1.12 - 1.15B $(9) – (8)M $28 - 32M $0.29 $0.33 ($0.22) (0.18) ($0.20)($0.20) ($0.13)($0.14) ($0.24) First quarter revenue guidance of $1.12B to $1.15B assumes: • Shipments increase 11% to 13% Q1
Slide 12: Q4 2024 Performance Metrics
Q4 2024 PERFORMANCE METRICS Asset Management Inventory Days of Cash Conversion The Company’s cash conversion cycle decreased Supply Cycle sequentially due to an increase in days payables outstanding, partially offset by an increase in inventory 85 79 days of supply Cash Flow Cash from Operating LTM
Slide 13: Liquidity and Leverage
LIQUIDITY AND LEVERAGE • Net Leverage of 3.9x in Q4 ’24 above target range of 0.5x to 2.0x $497 $487 $455 $440 $382 • Global liquidity remained strong at $451M $656 $684 $585 $491 $451 in Q4 ’24 at December 31, 2024 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Liquidity Net Debt $656 $684 $585 54 42 $491 42 45 28
Slide 14: Capital Allocation Plan
CAPITAL ALLOCATION PLAN LTM1 free cash flow generation $100M in ’24; Quarterly $50M in ‘25E dividend Modernization and of $0.1875 and Value-Add per share for Q1’25 CAPEX DIVIDENDS M&A BUYBACKS Track record of $51M repurchased successful in ’24; $38M acquisitions remaining in authorization Supports k
Slide 15: Shareholder Returns
SHAREHOLDER RETURNS $0.1875 and $51.0M per Share Share repurchases completed in Return of capital to investors FY 2024 Q1 2025 announced: $0.1875 Ryerson’s dividend is enabled by a transformed balance sheet and per Share continued prioritization of Return of capital to investors shareholder returns
Slide 16: Q4 2024 Key Financial Metrics
Q4 2024 KEY FINANCIAL METRICS Diluted Loss Net Sales Gross Margin Net Loss1 Debt per Share $1.0B 19.0% ($4.3)M ($0.13) $468M (10.6%) +110 bps $2.3M +$0.07 ($54M) QoQ QoQ QoQ QoQ QoQ Gross Tons Adj. EBITDA Adjusted Diluted Margin, excl. Net Debt Shipped excl. LIFO Loss per Share LIFO 447k 16.4% $10.3
Slide 17: FY 2024 Key Financial Metrics
FY 2024 KEY FINANCIAL METRICS Diluted Loss Net Sales Gross Margin Net Loss1 Debt per Share $4.6B 18.1% ($8.6)M ($0.26) $468M (10.0%) -190 bps ($154.3M) ($4.36) $32M YoY YoY YoY YoY YoY Gross Tons Adj. EBITDA Adjusted Diluted Margin, excl. Net Debt Shipped excl. LIFO Loss per Share LIFO 1.9M 17.0% $1
Slide 18: Intelligent Network
INTELLIGENT NETWORK • Diversified (metals mix, ~40k customers, ~75k products) • Availability, speed, ease, consistency • Over 110 facilities • Hundreds of “virtual” locations • 24/7 E-Commerce Platform • Relationship-centric customer experience • Building the value chain of the future 18
Slide 19: Ryerson Family of Companies
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Slide 20: Appendix
Appendix
Slide 21: Ryerson.com 3.0
RYERSON.COM 3.0 • Investing in digitalization to improve the customer experience 21
Slide 22: Dividend Payments
DIVIDEND PAYMENTS EPS 1 Dividend Yield 2 Dividend per Share $4.10 $0.1875 $0.1875 $0.1875 $0.1875 $0.1875 $0.1825 $0.1850 $0.18 4.1% 2.1% $0.17 ($0.26) Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 2023 2024 • Stronger capital structure allows for sustainable returns to shareholders 1EPS is
Slide 23: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS Tons Sold (000’s) Average Selling Price Per Ton 497 508 485 $2,472 $2,493 $2,412 450 447 $2,323 $2,254 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Gross Margin & Gross Margin, excl. LIFO Adj. EBITDA excl. LIFO & Net Income (Loss) Mar
Slide 24: 10 Year Progress
10 YEAR PROGRESS Improved Improved Balance Sheet Transformation Operating Model Capital Allocation Adj. EBITDA ex. Book Value of Equity Net PP&E 10-Year Total LIFO1 Investment ▲$950M ▲$209M 10-Year ▲$29.5/share Capex $567M $2.9B Total Acquisitions $482M Annual $288M Average 10-Year Total Shareholder
Slide 25: Non-GAAP Reconciliation: Adjusted EBITDA, Excl. LIFO
NON-GAAP RECONCILIATION: ADJUSTED EBITDA, EXCL. LIFO ($M) Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Tons Sold (000's) 450 497 508 485 447 Net Sales 1,112.4 1,239.2 1,225.5 1,126.6 1,007.4 Gross Profit 247.2 217.6 223.5 202.0 191.1 Gross Margin 22.2% 17.6% 18.2% 17.9% 19.0% LIFO expense (income) (59.3) 1.0
Slide 26: Non-GAAP Reconciliation: Adjusted Net Income (Loss)
NON-GAAP RECONCILIATION: ADJUSTED NET INCOME (LOSS) (Dollars and shares in millions, except per share data) Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Net income (loss) attributable to Ryerson Holding Corporation $25.8 ($7.6) $9.9 ($6.6) ($4.3) Restructuring and other charges - - 1.7 1.1 0.3 Gain on insuran
Slide 27: Non-GAAP Reconciliation: Net Debt
NON-GAAP RECONCILIATION: NET DEBT ($M) Q4 '14 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Total debt $1,242.1 $436.5 $497.3 $525.4 $522.1 $467.4 Less: cash and cash equivalents ($60.0) ($54.3) ($41.9) ($28.0) ($35.0) ($27.7) Less: Fair value of AM Castle shares ($11.2) - - - - - Net Debt $1,170.9 $382.2 $455
Slide 28: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ($M) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Tons Sold (000's) 2,024 1,897 1,903 2,000 2,268 2,381 2,009 2,095 2,029 1,943 1,937 Net Sales 3,622.2 3,167.2 2,859.7 3,364.7 4,408.4 4,501.6 3,466.6 5,675.3 6,323.6 5,108.7 4,598.7 Average Selling Price $1,790 $1,67